31386 paragraphs found
Responding to the Assessed Risks at the Assertion Level (Ref: Para. 7(a)) Nature …
The auditor’s assessed risks may affect both the types of audit procedures to be performed and their combination. For example, when an assessed risk is high, the auditor may confirm the completeness of the terms of a contract with the counterparty, in …
The reasons for the assessment given to a risk are relevant in determining the nature of audit procedures. For example, if an assessed risk is lower because of the particular characteristics of a class of transactions without consideration of the related …
The auditor may perform tests of controls or substantive procedures at an interim date or at the period end. The higher the risk of material misstatement, the more likely it is that the auditor may decide it is more effective to perform substantive …
On the other hand, performing audit procedures before the period end may assist the auditor in identifying significant matters at an early stage of the audit, and consequently resolving them with the assistance of management or developing an effective …
In addition, certain audit procedures can be performed only at or after the period end, for example: Agreeing or reconciling information in the financial report with the underlying accounting records, including whether such information is obtained from …
Further relevant factors that influence the auditor’s consideration of when to perform audit procedures include the following: The control environment. When relevant information is available (for example, electronic files may subsequently be …
The extent of an audit procedure judged necessary is determined after considering the materiality, the assessed risk, and the degree of assurance the auditor plans to obtain. When a single purpose is met by a combination of procedures, the extent of each …